CBIRC to further open domestic market for foreign banks and insurers

By the end of the first quarter of 2020, foreign banks had established 41 foreign-funded corporate banks, 115 foreign bank branches, and 149 representative offices in China.
The total number of business institutions is 975 (including the head offices, branches and sub-branches), and the total assets of foreign banks are 3.58 trillion yuan.

According to a recent report by Xinhua News Agency, by the end of the first quarter of 2020, foreign banks had established 41 foreign-funded corporate banks, 115 foreign bank branches, and 149 representative offices in China.

The total number of business institutions is 975 (including the head offices, branches and sub-branches), and the total assets of foreign banks are 3.58 trillion yuan.

Overseas insurance institutions have established 64 foreign-funded insurance institutions, 124 representative offices and 18 insurance professional intermediaries in China. The total assets of foreign-funded insurance companies are 1.46 trillion yuan.

According to its report, in recent years, the China Banking and Insurance Regulatory Commission (CBIRC) has taken the initiative to adapt to changes in the international economic and financial situations and the objective needs of banking and insurance for reform and development, and further expand the high-level two-way opening of the banking and insurance industry.

In 2018, CBIRC introduced 15 liberalization measures in four areas. In 2019, it introduced another 19 measures for opening the market, which was appraised by the market.

At present, the revision of the regulations related to the above 34 open measures has been basically completed. The government revised and promulgated the “Regulations on the Management of Foreign-funded Banks”, “Regulations on the Management of Foreign-funded Insurance Companies”, “Implementation Rules on the Regulations on the Management of Foreign-funded Banks” and “Implementation Rules on the Regulations on the Management of Foreign-funded Insurance Companies” and “Measures on the Implementation of Administrative Licensing Matters for Foreign-funded Banks”

In addition, it also issued the “Notice on Clearly Abolishing the Time Limits of Foreign Capital Ratios of Joint Venture Life Insurance Companies.”

At the same time, CBIRC is reviewing market access applications made by foreign-funded institutions, and pushing for more launches of these entities.

Throughout 2019 and the first quarter of 2020, CBIRC approved a total of 27 preparatory applications and 26 opening applications for foreign banks and insurance institutions.

This includes a number of applications with huge significance, such as the opening of the country’s first wholly foreign-owned insurance holding company Allianz (China) Insurance Holdings Co., Ltd., etc.

It approved an increase of 9.495 billion yuan from foreign bank insurance institutions.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/05/26/cbirc-to-further-open-domestic-market-for-foreign-banks-and-insurers/.

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